Malaysian stocks and foreign exchange both rose, Bloomberg praised the name one after another

The domestic political situation is stable, foreign capital continues to flow back, and the Malaysian stock exchange has performed well since this year, making Bloomberg continue to write articles about the prospects of the Malaysian economy and the ringgit exchange rate.

This prompted a rise in market sentiment. The Malaysian stock market value broke the historical record of RM2 trillion on May 7.

As of May 31, Malaysian stocks closed at 1596.68 points. Compared with the closing of 1454.66 points last year, they have surged nearly 10% so far this year.

According to Bloomberg data, throughout May, foreign investors made net purchases of 52.9 million US dollars (approximately RM2,369.99 million) of Malaysian stocks, which is the largest return of foreign capital since March 2022.

According to market observations, the ringgit exchange rate still continues to strengthen and is expected to rise to 4.65 this year.

According to a Bloomberg report, the AI field is gradually emerging, and China's political stability is further attracting the attention of foreign investors. In May, Malaysia was the only Southeast Asian country to see capital inflows.

In addition to recently being favored and planned to be invested by giants such as Nvidia and Microsoft; the Solidarity Government, which has been in power for a year and a half, continues to push forward reforms, which is very popular with investors and has also improved the prospects of the Malaysian market.

Furthermore, Huang Deming, CEO of Areca Capital, pointed out that the haze of political instability has dissipated. Coupled with rising commodity prices, Malaysia has once again become a target for foreign investment. Furthermore, Prime Minister Anwar also frequently invites major companies to invest in the AI and green energy industries.

“This is a good time for Malaysian stocks that are cheap and have insufficient holdings. ”

Since the beginning of the year, Malaysia's FTSE Composite Index has risen by about 10%, while the MSCI ASEAN Index has only climbed about 3%. Analysts expect Malaysian stocks to rise another 7% in the next 12 months, surpassing the peak in December 2020.

According to CIMC Securities, after the rise in utilities and healthcare stocks, foreign investors recently held large amounts of China's technology and transportation stocks.

Alan Richardson, manager of Samsung Asset Management Fund, also said that Malaysia is gradually highlighting niche advantages in the AI ecosystem. Other potential advantages include low cost and geopolitical stability.

What is certain is that the current rise in the FTSE Composite Index has pushed the capital-benefit ratio valuation to more than 14 times the 5-year average. On the other hand, other regions, such as Vietnam and Indonesia, are still trading below the 5-year average.